The latest retail figures show with the pre-July carbon tax compensation payments out of the way, Australia has returned to anaemic spending growth, lifting the amount consumers put through shops barely enough to keep pace with inflation and population growth.

Retail spending growth returned to its long-term trend of 0.2 per cent a month in August, after soaring an exceptional 1.2 per cent in June after bonus payments worth $2.85 billion, and then slipping by 0.8 per cent in July.

"It's an insipid pace," the Westpac economist Matthew Hassan said. "Small retailers have borne the brunt with sales falling a further 0.7 per cent in August after 1.4 per cent in July."

Away from the shops, car lovers are spending up big. Separately released industry figures show vehicle sales up 9 per cent in the year to September, with sports utility vehicles accounting for almost one in three vehicles sold.

The 28 per cent figure is a record high, up from last year's 23 per cent. By contrast, only 0.4 per cent of all cars sold were fuel-efficient hybrids. But the figure is an improvement. Last year, it was 0.2 per cent.

Sales of locally made vehicles slid a further 2.8 per cent. Only one in eight cars sold in Australia were Australian made. Holden suffered the biggest loss, with sales in the year to September of only 85,345 - down almost 10,000 from the 95,935 sold in the preceding year.

BIS Shrapnel's Tim Hampton said the news depicted "an economy making progress, but in need of additional stimulus".

"The Reserve Bank's rate cut will spur further growth, as will a second cash rate cut, which we expect in November."

AMP's chief economist, Shane Oliver, is expecting three more cuts in the Reserve Bank's cash rate, taking it to an all-time low of 2.5 per cent.

"Although it has cut the rate to 3.25 per cent, near its global financial crisis low, the mortgage rates charged by banks are still well above their crisis lows," he said.

"To achieve 6 per cent mortgage rates the cash rate will need to fall to around 2.5 per cent. I expect another cut next month on Melbourne Cup day, followed by a cut early next year."